Americas Gold and Silver Announces Agreement with Affiliate of Royal Gold to Settle Fixed Gold Delivery Obligation

Americas Gold and Silver has reached an agreement with International Royalty Corporation (IRC, an affiliate of Royal Gold) to settle its remaining fixed gold delivery obligation of 8,861 ounces, originally scheduled between June 2026 and December 2027. The settlement consists of an immediate delivery of 5,000 ounces of gold and the issuance of 2,652,532 common shares at a deemed price of US$5.86 per share. The cash portion is partly offset by approximately US$7 million in proceeds from unwinding in‑the‑money gold price protection instruments. This follows the May 22 2026 announcement that the company had terminated its silver delivery agreement with Sprott Mining through a share issuance. Combined, the two transactions remove over US$85 million in variable future debt obligations and eliminate encumbrances on the company’s operations.

The gold settlement is a material positive event. It eliminates a legacy streaming obligation that could have ballooned with higher gold prices, removes more than US$40 million in variable liabilities, and further cleans up the balance sheet. The consideration is modestly dilutive – the 2.65 million new shares represent less than 1% of the expected outstanding share count – and the cash outlay is softened by a US$7 million gain from gold price hedges. Together with the Sprott silver stream termination, Americas has now extinguished over US$85 million in future variable debt, substantially reducing financial risk and enhancing free cash flow visibility. The move reinforces the management’s commitment to a stronger, unencumbered capital structure and signals confidence in the ongoing production ramp‑up.

Americas Gold and Silver Corporation is a growing silver and critical‑metals producer with operations in Idaho, USA (Galena Complex and Crescent Mine) and Sinaloa, Mexico (Cosalá Operations). The flagship Galena Complex is a historic, high‑grade silver‑copper‑antimony‑lead mine that is being revitalized through aggressive capital investments, method transition to long‑hole stoping, and mill expansion to 1,200 tpd. The newly acquired Crescent Mine (9 miles from Galena) adds high‑grade silver‑copper resources and will supply mill feed. Cosalá’s EC120 zone entered commercial production in January 2026, significantly boosting output. The company also holds a 51% stake in a joint venture with U.S. Antimony to build an antimony processing plant at Galena, positioning it as the sole U.S. domestic antimony producer. FY 2026 guidance is 3.2‑3.6 Moz silver at AISC of $30‑$35/oz.